Transcript
Page 1: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

U.S. Department of Commerce Bureau of Industry and SecurityOffice of Technology Evaluation

U.S. Textile, Apparel, and Footwear Industry Assessment

Preliminary Results

2017 JAPBI DLA Troop Support ConferenceNovember 15, 2017Cherry Hill, NJ

Stamen BorissonTrade and Industry Analyst

Elizabeth OakesTrade and Industry Analyst

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Page 2: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 2

• Office of Technology Evaluation (OTE)

Mission: OTE is the focal point within BIS for assessing the capabilities of the U.S. industrial base to support the national defense and the effectiveness of export controls.

• Bureau of Industry and Security (BIS)

Mission: Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.

Develops export control policies Issues export licenses Prosecutes violators to heighten national security Develops and implements programs that ensure a technologically

superior defense industrial base

Who We Are:

Page 3: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 3

OTE Industry Surveys & Assessments Background:

• Under Section 705 of the Defense Production Act of 1950 and Executive Order 13603, ability to survey and assess:Economic health and competitivenessDefense capabilities and readiness

• Data is exempt from Freedom of Information Act (FOIA) Requests.

• Enable industry and government agencies to:

Share data and collaborate in order to ensure a healthy and competitive industrial baseMonitor trends, benchmark industry performance, and raise awareness of

diminishing manufacturing and technological capabilities

Page 4: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 4

U.S. Textile, Apparel and Footwear Industry AssessmentsBackground

• At the request of the U.S. Congress, BIS/OTE is updating a 2003 assessment of the U.S. Textile, Apparel and Footwear Industry. The updated assessment will focus on the health, competitiveness, and contribution of the industry to the U.S. economy. Other topics to be reviewed include:

Identify dependencies on foreign sources for critical materials

Evaluate potential threats to security due to foreign sourcing and dependency

Locate points of weakness within the domestic supply chain

Measure the industry’s capacity to increase production in a national emergency

Examine Berry Amendment and other Buy-American provisions

Explore concerns and issues faced by domestic producers

• Project divided into two parts:

Footwear – survey deployed in November 2016

Textiles and Apparel – survey deployed in February 2017

Page 5: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

Methodology – Textiles and Apparel• Scope of survey and assessment was limited to U.S. manufacturers of textiles, textile

products, and apparel, as defined and classified by the North American Industry Classification System (NAICS). • Excluded from the scope of the survey were organizations such as distributors/importers,

service providers, suppliers, designers, etc.• BIS decided to provide exemption from the survey requirement, if requested, for

organizations with less than 10 employees.• The primary product line reported (some respondents reported more than one capability)

was used to categorize the respondent into the following:

5

Textile Mills

• Fiber, Yarn, Thread• Broadwoven Fabric• Narrow Fabric Mill / Schiffli

Machine Embroidery• Non-Woven Fabric• Knit Fabric• Textile and Fabric Finishing• Fabric Coating

Textile Product Mills• Carpet and Rug• Curtain and Linen• Textile Bag and Canvas• Rope, Cordage, Twine, Tire

Cord, or Tire Fabric• Other Textile Products

Apparel Manufacturers

• Hosiery and Socks• Other Apparel Knitting• Cut and Sew Apparel Contractor• Men's and Boys' Cut and Sew

Apparel• Women's and Girls' Cut and

Sew Apparel• Other Cut and Sew Apparel• Apparel Accessories and Other

Apparel

Page 6: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

• Organization size was established based on sales from products manufactured in the U.S.• Small: Under $10M in annual sales• Medium: $10M-$50M in annual sales• Large: Over $50M in annual sales

• U.S. Government suppliers and U.S. Berry Amendment manufacturers were categorized based on survey responses.

• Today’s presentation’s data set consists of completed survey responses from 499 organizations; the final assessment data set will include additional organizations.

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Methodology - Textiles and Apparel (continued)

Page 7: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

Methodology - Footwear• Scope of survey and assessment was limited to U.S. manufacturers of footwear, as

defined and classified by the North American Industry Classification System (NAICS). • Excluded from the scope of the survey were organizations such as distributors/importers,

service providers, suppliers, designers, etc.• BIS decided to provide exemption from the survey requirement, if requested, for

organizations with less than 10 employees.

• Organization size was established based on sales from products manufactured in the U.S.• Small: Under $10M in annual sales• Medium: $10M-$50M in annual sales• Large: Over $50M in annual sales

• U.S. Government suppliers and U.S. Berry Amendment manufacturers were categorized based on survey responses.

• Assessment data set consists of completed survey responses from 44 organizations.

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Page 8: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

Respondent Profile – U.S. Textile and Apparel

• 499 companies operating 764 Textile and/or Apparel manufacturing facilities in the U.S.

• Total 2016 Sales of $39 Billion• 2016 Sales of $19 Billion from products manufactured in the U.S.

8

RP/1b/7 499 respondents

Small: Under $10M in annual sales Medium: $10M-$50M in annual sales Large: Over $50M in annual sales

198

107

194

020406080

100120140160180200

Textile Mill TextileProducts

ApparelManufacturer

# of

Com

pani

es

Number of Companies Segmented by Type

288

144

67

0

50

100

150

200

250

300

Small Medium Large

# of

Com

pani

es

Number of Companies Segmented by U.S.-made Textile and Apparel Sales

Page 9: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 9

499 respondents

U.S. Textile and Apparel Manufacturing Organizations - Location

64

6

6

7

8

14

18

20

55

Others

New Jersey

Tennessee

Rhode Island

California

Georgia

Pennsylvania

South Carolina

North Carolina

# of Responses

Textile Mills

Q1a, A

93

7

7

7

8

8

9

12

41

Others

Georgia

Ohio

Tennessee

Alabama

California

Texas

New York

North Carolina

# of Responses

Apparel Manufacturers

54

5

5

6

6

6

6

7

12

Others

Pennsylvania

South Carolina

California

Georgia

New York

Ohio

Minnesota

North Carolina

# of Responses

Textile Product Mills

Page 10: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 10

499 respondents

U.S. Textile and Apparel Manufacturing Facilities

764

167

0

100

200

300

400

500

600

700

800

900

U.S. Non-U.S

How many total textile and/or apparel manufacturing

facilities does your organization currently

operate?

Q1b, A

31

54

4

38

90

41

88

5

33

6

32

16

63

43

30

28

54

108

Apparel Accessories and Other Apparel

Other Cut and Sew Apparel

Women's and Girls' Cut and Sew Apparel

Men's and Boys' Cut and Sew Apparel

Cut and Sew apparel Contractor

Hosiery and Socks

Other Textile Products

Rope, Cordage, Twine, Tire Cord, or Tire Fabric

Textile Bag and Canvas

Curtain and Linen

Carpet and Rug

Fabric Coating

Textile and Fabric Finishing

Knit Fabric Mill

Non-Woven Fabric

Narrow Fabric / Schiffli Machine Embroidery

Broadwoven Fabric

Fiber, Yarn, Thread

U.S. Facilities by Primary Product Line

Page 11: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 11

499 respondents

U.S. Textile and Apparel Manufacturing Facilities –Location

80101010111213131415151515161721222325292930

6886

169

OtherNew Hampshire

FloridaIllinois

MichiganIndiana

MarylandMinnesota

Rhode IslandNew Jersey

MassachusettsOhio

Puerto RicoWisconsinKentucky

TexasNew York

VirginiaCalifornia

PennsylvaniaTennessee

AlabamaSouth Carolina

GeorgiaNorth Carolina

Number of Facilities

Q1b, B

5,853 620 628 847 861 881 1,042 1,261 1,299 1,554 1,599 1,603 1,625 1,626 1,748 1,833 2,005 2,161 2,736 3,203 3,493

4,543 9,384

20,342 20,807

OtherUtah

MarylandWashington

KansasOhio

WisconsinRhode Island

New JerseyKentucky

New HampshireMassachusetts

New YorkIllinoisFlorida

CaliforniaTexas

VirginiaTennessee

PennsylvaniaPuerto Rico

AlabamaSouth Carolina

GeorgiaNorth Carolina

Facility Employees

Page 12: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

Respondent Profile – U.S. Footwear

• 44 companies operating 65 Footwear manufacturing facilities in the U.S.

• Total 2016 Footwear Sales of $8.5 Billion

12

RP/1b/7 44 respondents

Small: Under $10M in annual sales Medium: $10M-$50M in annual sales Large: Over $50M in annual sales

24

128

0

5

10

15

20

25

30

Small Medium Large

# of

Org

aniz

atio

ns

Number of Organizations Segmented by Sales of U.S.-manufactured Footwear

Page 13: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

Footwear Manufacturing Facilities - Location

13

13

65

0 50 100

Non-U.S*

U.S.

Total Footwear Manufacturing Facilities

* Includes China, Dominican Republic, etc.

113333

444

56

910

0 5 10 15

OthersMissouriOregon

WashingtonNew YorkCalifornia

PennsylvaniaWisconsin

MassachusettsArkansas

TexasMaine

# of Facilities

Top 10 U.S.-based Footwear Manufacturing Facilities by State

Q1b, A 44 respondents

Page 14: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 14

44 respondents

U.S. Footwear –Top 10 U.S. States- Full Time Equivalent (FTE) Employees

Q1b, B

413

516

767

887

896

995

1,064

1,188

1,320

2,234

0 500 1000 1500 2000 2500

North Carolina

Oregon

Massachusetts

Wisconsin

Arkansas

Puerto Rico

Missouri

Minnesota

Maine

Texas

# of Employees

12,142 Total U.S.

Page 15: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

U.S. Textile and Apparel Sales (2012-2016)

$36,550 $37,387 $40,523 $40,542 $39,453

$19,348 $19,146 $20,704 $20,038 $18,716

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

2012 2013 2014 2015 2016

$ M

illio

ns

U.S. Textile and Apparel ManufacturersTotal Textile and Apparel-Related SalesTotal Sales from Products Manufactured in the U.S.

15

Q7 499 respondents

Page 16: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

U.S. Textile and Apparel Sales (2012-2016)

$13.4 $13.0 $13.5 $13.5$12.6

$10.9 $10.5 $11.0 $11.1$10.2

$-

$5

$10

$15

$20

$25

2012 2013 2014 2015 2016

Bill

ions

U.S. Textile MillsTotal Textile and Apparel-Related Sales

Total Sales from Products Manufactured inthe U.S. (81% five-year average)

16

Q7 499 respondents

$5.5 $5.8 $5.6 $6.0 $5.6

$5.0 $5.4 $5.2 $5.5 $5.1

$-

$5

$10

$15

$20

$25

2012 2013 2014 2015 2016

Bill

ions

U.S. Textile ProductsTotal Textile and Apparel-Related Sales

Total Sales from Products Manufactured inthe U.S. (92% five-year average)

$17.6$18.5

$21.4 $21.0 $21.2

$3.4 $3.2$4.5

$3.4 $3.3

$-

$5

$10

$15

$20

$25

2012 2013 2014 2015 2016B

illio

ns

U.S. Apparel ManufacturersTotal Textile and Apparel-Related Sales

Total Sales from Products Manufactured inthe U.S. (18% five-year average)

Page 17: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

$19,348 $19,146 $20,704 $20,038

$18,716

$2,473 $1,994 $2,002 $2,251 $2,131 $-

$5,000

$10,000

$15,000

$20,000

$25,000

2012 2013 2014 2015 2016

$ M

illio

ns

U.S. Textile and Apparel ManufacturersTotal Sales From Products Manufactured in the U.S.Total Berry Amendment-Related Sales to DoD and Armed Services

17

Q7 499 respondents

U.S. Textile and Apparel Sales (2012-2016)

Page 18: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 18

U.S. Footwear Sales (2012-2016)

Q7 42 respondents

$7,216

$8,355 $8,664 $8,701 $8,523

$1,361 $1,396 $1,358 $1,443 $1,511

$168 $198 $164 $215 $292 $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2012 2013 2014 2015 2016

$ M

illio

ns

Total Footwear-Related Sales Total Sales from Footwear Manufactured in the U.S. Footwear-Related Government Sales

Page 19: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 19

499 respondents

U.S. Textile and Apparel - Manufacturing Utilization Rate

Q6, B

48% 48% 48% 49% 49%

58% 58% 59% 59% 59%

41% 40% 39% 39% 39%43% 43% 43% 44% 44%

30%

35%

40%

45%

50%

55%

60%

65%

2012 2013 2014 2015 2016

Util

izat

ion

Rat

e %

Estimate your organization's average annual manufacturing utilization rate for 2012-2016, as a percentage of maximum production possible

under a 7-day-a-week, 24-hour-per-day operationOverall Textile Mill Textile Products Apparel Manufacturer

Average manufacturing utilization rate for each of the years 2012-2015, as a percentage of production possible under a 7 day-per-week, 24-hour-per-day operation.

• Note: a 100% utilization rate equals full operation with no downtime beyond that necessary for maintenance. Assuming little maintenance downtime, one 8-hour shift, 5 days per week is approximately 25% capacity utilization; two 8-hour shifts, 7 days per week is approximately 65% capacity utilization.

Page 20: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 20

499 respondents

Limiting Factors to Ramping Production to Maximum Manufacturing Capacity:Availability of Workforce

Q6, D

61%

22%

7%

10%

Textile MillsYes No Not Sure N/A

68%

10%8%

14%

Textile ProductsYes No Not Sure N/A

72%13%

9%

6%

Apparel ManufacturersYes No Not Sure N/A

U.S. Textile and Apparel – Manufacturing Utilization Rate

1966

97118120

172200

331

OtherQuality control

Manufacturing spaceEquipment capacity

Availability of additional equipmentCost of workforce

Availability of input materialsAvailability of workforce

# of Responses

Identify which of the factors below would limit your organization's ability to raise its manufacturing utilization rate to 100% (maximum current capacity) to meet a surge in demand.

Page 21: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 21

462 respondents

U.S. Textile and Apparel – Surge Production Capabilities

Q6, C.2

126

200

7957

0

50

100

150

200

250

Very Confident Somewhat Confident Not Confident Unsure

# of

Res

pond

ents

How confident are you that your organization could obtain the material necessary to rapidly ramp up production in the event

of a national emergency?

Page 22: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 22

462 respondents

U.S. Textile and Apparel – Surge Production Capabilities

Q6, C.2

20

25

81

56

Unsure

Not Confident

Somewhat Confident

Very Confident

Textile Mills

How confident are you that your organization could obtain the material necessary to rapidly ramp up production in the event of a national emergency?

16

16

48

20

Unsure

Not Confident

Somewhat Confident

Very Confident

Textile Products

21

38

70

50

Unsure

Not Confident

Somewhat Confident

Very Confident

Apparel Manufacturers

23

37

126

77

Unsure

Not Confident

Somewhat Confident

Very Confident

USG Suppliers

34

42

74

49

Unsure

Not Confident

Somewhat Confident

Very Confident

Others

Page 23: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 23

Average Annual U.S. Footwear Capacity Utilization Rate (2012-2016)

Q6,B 44 respondents

33% 32% 33% 34% 34%

40%

36%

39% 38%

44%

31% 30%

28%29% 28%

31% 32%

34% 34%

33%

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

45%

2012 2013 2014 2015 2016

Uti

lizat

ion

Rate

%

Average Utilization Rate Large >$50M Medium $10M-$50M Small <$10M

Page 24: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 24

U.S. Footwear - Manufacturing Utilization Rate

Q6,D 44 respondents

0

1

1

3

3

5

3

11

2

9

9

9

14

13

16

24

0 5 10 15 20 25 30 35 40

Other

Manufacturing space

Quality control

Equipment capacity

Availability of additional equipment

Availability of input materials

Cost of workforce

Availability of workforce

# of Responses

Identify which of the factors below would limit your organization's ability to raise its manufacturing utilization rate to 100% (maximum current

capacity) to meet a surge in demand.

Berry Amendment Manufacturers Other Manufacturers

Page 25: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 25

U.S. Footwear – Surge Production Capabilities

Q6,D 44 respondents

4

7

10

5

11

9

7

0

2

4

6

8

10

12

14

16

18

20

Very Confident Somewhat Confident Not Confident Unsure

# of

Res

pond

ents

How confident are you that your organization could obtain the material necessary to rapidly ramp up production in the event of

a national emergency?

Berry Amendment Manufacturers Other Manufactuers

Page 26: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 26

499 respondents

U.S. Textiles and Apparel - Workforce

Q11a, A

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2012 2013 2014 2015 2016

# of

Em

ploy

ees

Total number of full-time equivalent (FTE) textile and/or apparel-related employees for all your U.S.-based operations (2012-2016)

Other

Testing Operators, Quality Control, andSupport TechniciansProduction Line Workers - MachineTechniciansMarketing & Sales

Information Technology Professionals

Designers

Facility & Maintenance Staff

Engineers, Scientists, and R&D Staff

Administrative, Management, & LegalStaffProduction Line Workers - Operators

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 27

475 respondents

U.S. Textiles and Apparel - Workforce

Q11a, B

No, 166, 35%

Yes, 309, 65%

Does your organization have difficulty hiring and/or retaining any type of employees for your textile and/or apparel-related

operations?

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 28

499 respondents

U.S. Textiles and Apparel - Workforce

Q11a, B

0 50 100 150 200 250 300 350 400

Other

Information Technology Professionals

Design

Marketing & Sales

Administrative, Management, & Legal

Engineers, Scientists, and R&D

Testing Operator, Quality Control, and Support

Facility and Maintenance

Production Line - Machine Technicians

Production Line - Operators

#of Responses

Does your organization have difficulty hiring and/or retaining any type of employees for your textile and/or apparel-related operations?

Both Hiring Retaining Neither Not Applicable

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 29

499 respondents

U.S. Textiles and Apparel - Workforce

Q11b, B

Very Concerned23%

Somewhat Concerned

37%

Neutral18%

Not Worried22%

How concerned is your organization about your current textile and/or apparel-related workforce retiring in the near future?

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 30

499 respondents

U.S. Textiles and Apparel - Workforce

Q11b, C

154

185

188

198

271

315

337

0 50 100 150 200 250 300 350 400

Significant portion of workforce retiring

Employee turnover

Attracting workers to location

Transfer of knowledge

Quality of workforce

Finding experienced workers

Finding skilled/qualified workers

# of Responses

Select and explain the key workforce issues you anticipate between 2017-2021

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 31

U.S. Footwear - Workforce

Q11a,A 44 respondents

0

5,000

10,000

15,000

20,000

25,000

2012 2013 2014 2015 2016

# of

Em

ploy

ees

Other

Testing Operators, Quality Control,and Support Technicians

Marketing & Sales

Information TechnologyProfessionals

Facility and Maintenance Staff

Engineers, Scientists, and R&DStaff

Designers

Admin

Production Line Workers

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 32

U.S. Footwear - Workforce

Q11a,B 44 respondents

0 5 10 15 20 25 30 35

Testing Operator, Quality Control, andSupport

Administrative, Management, & Legal

Facility and Maintenance

Information Technology

Design

Marketing & Sales

Engineers, Scientists, and R&D

Production Line

# of Responses

Does your organization have difficulty hiring and/or retaining any type of employees for your footwear-related operations?

Both Hiring Retaining Neither N/A

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 33

U.S. Footwear - Workforce

Q11b,C 44 respondents

12

18

18

21

23

24

27

0 5 10 15 20 25 30

Significant portion of workforce retiring

Employee turnover

Transfer of knowledge

Finding experienced workers

Attracting workers to location

Finding skilled/qualified workers

Quality of workforce

# of Responses

Select and explain the key workforce issues you anticipate between 2017-2021

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 34

499 respondents

U.S. Textiles and Apparel - Competitive Attributes

Q12b, A

61

31

43

45

47

186

316

492

0 100 200 300 400 500 600

Other

Productivity

Quality

Innovation

Delivery time

Other

Range of capabilities

Price

# of Responses

Primary competitive attributes of leading U.S. competitors

11

18

19

20

60

80

312

0 100 200 300 400

Delivery time

Innovation

Receipt of governmentsubsidies

Quality

Other

Range of capabilities

Price

# of Responses

Primary competitive attributes of leading non-U.S. competitors

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 35

44 respondents

U.S. Footwear - Competitive Attributes

Q12b, A

1

2

2

3

4

5

21

30

41

0 10 20 30 40 50

Financing

Reliability

Productivity

Innovation

Delivery time

Quality

Range of Capabilities

*Other

Price

# of Responses

Primary competitive attributes of leading U.S. competitors

* Offshore manufacturing, economies of scale, others. 1

1

1

1

2

3

8

8

30

0 10 20 30 40

Delivery time

Financing

Government subsidies

Reliability

Innovation

Range of capabilities

Quality

Other

Price

# of Responses

Primary competitive attributes of leading non-U.S. competitors

Page 36: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 36

499 respondents

U.S. Textiles and Apparel – Top Competitive Advantages

Q12b, B

33

34

70

101

102

126

168

172

200

259

0 50 100 150 200 250 300

Supply of skilled workers

Reduced process variability

Productivity

Design

Overall finished products

Other

Performance

Innovation

Lead time

Quality

# of Times Listed

Identify the top five competitive advantages your organization's U.S.-based manufacturing operations possess as they relate to

foreign competition

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 37

499 respondentsQ12b, B

51

59

60

63

73

73

94

129

139

232

0 50 100 150 200 250

Trade barriers

Reduced cost

Equipment costs

Building space costs

Environmental compliance costs

Energy costs

Other

Supply of skilled workers

Material costs

Labor costs

# of Times Listed

Identify the top five competitive disadvantages your organization's U.S.-based manufacturing operations possess as

they relate to foreign competition

U.S. Textiles and Apparel – Top Competitive Disadvantages

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 38

U.S. Footwear - Top Competitive Advantages

Q12b,B 44 respondents

5

5

13

15

16

17

17

20

24

0 5 10 15 20 25 30

Productivity

Supply of skilled workers

Innovation

Overall finished products

Design

Lead time

Performance

Other

Quality

# of Responses

Identify the top five competitive advantages your organization's U.S.-based footwear manufacturing operations possess as they relate to foreign

competition.

Page 39: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 39

U.S. Footwear - Top Competitive Disadvantages

Q12b,B 44 respondents

6

7

7

7

9

18

20

29

0 5 10 15 20 25 30 35

Reduced cost

Equipment costs

Lead time

Building space costs

Supply of skilled workers

Material costs

Other

Labor costs

# of Responses

Identify the top five competitive disadvantages your organization's U.S.-based footwear manufacturing operations possess as they relate to foreign

competition.

Page 40: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 40

499 respondents

U.S. Textiles and Apparel: Competitive Outlook (Defense-related and Commercial)

Q13a, B2

Anticipated changes in competitive prospects for U.S. textile and/or apparel operations (both defense-related and commercial) from 2017 through 2021?

Improve, 147, 32%

Decline, 23, 5%

Remain the Same, 125,

27%

Not Applicable, 162, 36%

Defense-related: 457 respondents

Improve, 241, 53%

Decline, 25, 6%

Remain the Same, 142, 31%

Not Applicable,

47, 10%

Commercial: 455 respondents

Page 41: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 41

U.S. Footwear - Competitive Outlook (2017-2021)(Defense-Related and Commercial)

Q13a,B 44 respondents

Improve, 9, 50%Remain

the Same, 6, 33%

Decline, 3, 17%

Defense-Related

* 26 of 44 respondents selected ‘Not Applicable’

Improve, 23, 56%

Remain the

Same, 15, 37%

Decline, 3, 7%

Commercial

*3 of 44 respondents selected ‘Not Applicable’

Page 42: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 42

499 respondents

U.S. Textiles and Apparel – Challenges

Q15, A

144

189

190

192

215

259

266

270

336

339

0 50 100 150 200 250 300 350 400

Commercial Demand

Taxes

U.S. Trade Policy

Domestic Competition

Aging Equipment

Worker/skills Retention

Aging Workforce

Foreign Competition

Healthcare Costs

Labor Availability

# of Respondents

Top 10 Challenges

Page 43: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 43

499 respondents

U.S. Textiles and Apparel – ChallengesPercentage of Respondents Selecting Adversely Affecting Issues

Q15, A

28%

31%

32%

33%

39%

43%

47%

48%

55%

56%

67%

71%

0% 20% 40% 60% 80%

Apparel Manufacturers

16%

19%

47%

25%

42%

37%

49%

66%

59%

53%

72%

67%

0% 20% 40% 60% 80%

Government AcquisitionProcess

Access to Capital

U.S. Trade Policy

Government PurchasingVolatility

Taxes

Domestic Competition

Aging Equipment

Foreign Competition

Aging Workforce

Worker/Skills Retention

Healthcare Costs

Labor Availability

Textile Mills

21%

25%

32%

24%

28%

32%

34%

42%

39%

43%

61%

64%

0% 20% 40% 60% 80%

Textile Product Mills

Page 44: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 44

44 respondents

U.S. Footwear - Challenges

Q15, A

12

12

15

20

21

24

25

25

29

31

0 5 10 15 20 25 30 35

Environmental Regs - Domestic

Reduction in USG Demand

Taxes

Aging Workforce

Aging Equipment

Worker/Skills Retention

Domestic Competition

Foreign Competition

Labor Availability

Healthcare Costs

# of Responses

Top 10 Challenges

Page 45: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

282

217

0

50

100

150

200

250

300

Yes No

# of

Res

pond

ents

45

499 respondentsQ3a, A

U.S. Textile and Apparel - Participation in U.S. Government Programs (2012-2016)

122

72

10593

55 52

0

20

40

60

80

100

120

140

Yes No

Apparel Manufacturers Textile Mills Textile Product Mills

185 organizations reported having interest in manufacturing for the USG.

Has your organization manufactured textiles and/or apparel for the U.S. Government (defense and/or non-defense) during 2012 through 2016?

Page 46: U.S. Textile, Apparel, and Footwear Industry Assessment … · 2018. 1. 12. · Textile, Apparel, and Footwear Industry Assessments – Preliminary, 2017. BIS/OTE. Textile, Apparel,

Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments– Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

$2,473

$1,994 $2,002 $2,251

$2,131

$860 $756 $753 $808 $720

$207 $176 $142 $169 $166

$1,396

$1,052 $1,098 $1,259 $1,227

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2012 2013 2014 2015 2016

$ M

illio

ns

U.S. Textile and Apparel ManufacturersTotal Berry Amendment-Related Sales to DoD and Armed Services

Textile Mills

Textile Products

Apparel Manufacturers

46

Q7 499 respondents

U.S. Textile and Apparel - USG Sales (2012-2016)

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 47

U.S. Footwear - Participation in USG Programs (2012-2016)

44 respondentsQ3a,A

13

31

0

5

10

15

20

25

30

35

Yes No

# of

Res

pond

ents

Has your organization manufactured footwear for the

U.S. Government (defense and/or non-defense) during 2012

through 2016? )

10 organizations reported having interest in manufacturing footwear for the U.S. Government

Types of footwear products interested in supplying:• Boots• Custom shoes and boots• Direct Attach• Ice Skates & Roller Skates• injection molded PVC boots• Men's and Women's Boots, Oxfords, Athletic

Shoes• Men's and Women's boots/shoes• Men's dress shoes; non-skid work shoes• Military boots• Outsoles, Shoe Lasts, Insoles, Foot beds• Wildland Firefighting boots or derivative

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 48

U.S. Footwear - USG Sales (2012-2016)

Q7 42 respondents

$1,361 $1,396 $1,358 $1,443

$1,511

$168 $198 $164 $215 $292

$141 $159 $126 $179 $253

$7 $8 $17 $13 $21 $0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2012 2013 2014 2015 2016

$ M

illio

ns

Total Sales from Finished Pairs Manufactured in the U.S. Footwear-Related Government Sales

Total Berry Amendment-Related Sales to DoD Total footwear-related Foreign Military Sales (FMS)

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 49

272 respondents

2

4

10

33

40

41

44

98

0 20 40 60 80 100 120

Cost Reimbursement

Time and Materials

Indefinity Delivery

Not Applicable

Lowest Price TechnicallyAcceptable (LPTA)

Best Value

Other (explain below)

Fixed Price

# of Responses

Select the contract type your organization most frequently uses to do business with

the U.S. Government.

Q3b, A.2

U.S. Textiles and Apparel – USG Contracting

COMMENTS:

Best Value• Best Value, Fixed Price, IDIQ• While the method of

competing/evaluation/selection may be "best value" the type of contracts are fixed price contracts.

Fixed Price• Fixed price contracts are the norm in our

industry.• Fixed Price Indefinite Quantity Contracts,

specifically

Lowest Price Technically Acceptable (LPTA)• LPTA- open bidding response to DLA

Other• Mandatory source from prime• Source America set aside• Sub Contract• We don't have contracts with the U.S.

Government, we are subcontracted.

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 50

241 respondentsQ3b, A.4

32

47

1119

26

5

37

59

5

Yes No Not Applicable0

10

20

30

40

50

60

70

Does your organization have any recommendations to improve the overall U.S. Government acquisition process for

textiles and apparel?

Textiles

Textile Products

Apparel

U.S. Textiles and Apparel - USG Contracting

RECOMMENDATIONS (sample):• Contracting officers need to have a working knowledge and understanding of the industry they are soliciting in before soliciting.

Fixed pricing for multiple years does not work in the uniform industry. Due to volatility of raw materials and of governmentpurchasing, a guess is all that a contractor can do. This results in higher prices to the government and volatile profitability to the contractor, so that neither party truly receives the best value.

• Cost adjustments for raw materials during contract, like the apparels have• Delivery orders in 3 month increments do not give agencies volume buying power thereby increasing costs to the government.

Nor do the short term orders allow for long term business planning/staffing/equipment for the agency.• Deviations for product improvements should be allowed; obsolete specifications need to be updated.

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 51

276 respondentsQ3b, B.4

8

48

17

28

9

22

8

16

31

57

21

11

Yes No Not Sure Not Applicable0

10

20

30

40

50

60

Would your organization suggest any changes in the mandatory source regulations or contracting practices?

Textiles

Textile Products

Apparel

U.S. Textiles and Apparel - USG Mandatory Sourcing

Comments:• Change the ranking of priorities. Source America, then NIB, and then FPI.• Do not allow FPI/UNICOR to bid on small business set asides.• Eliminate FPI from offering on any type of Small Business Set-Aside• Eliminate Mandatory Sourcing. In many cases suppliers are no longer in business.• Federal Prison Industries has to go. Federal gov't is subsidizing the cost of sewn products by using prison labor. Why are we training

prisoners for the very few sewing jobs that are still around?

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 52

14 respondents

1

1

1

2

2

7

0 2 4 6 8

Lowest Price TechnicallyAcceptable (LPTA)

Other (specify below)

Time and Materials

Fixed Price

Not Applicable

Best Value

# of Responses

Select the contract type your organization most frequently uses to do

business with the U.S. Government.

Q3a, E.2

U.S. Footwear – USG Contracting

COMMENTS:

Best Value• Best value in military boots defaults

primarily to cost. Most contractors are deemed equivalent so best value tradeoffs default to cost. Small Businesses are poorly represented in solicitations.

• Best Value via TLS• We prefer best value procurements as it

includes past performance (i.e. delivery and quality record) as an evaluation factor. The majority of our contracts are firm-fixed price.

Fixed Price• IDIQ has also been a factor in all previous

contracts.

Lowest Price Technically Acceptable (LPTA)• Always been this way

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 53

12 respondentsQ3a, E.4

7

5

Yes No0

1

2

3

4

5

6

7

8

# of

Res

pond

ents

Does your organization have any recommendations to improve the

overall U.S. Government acquisition process for footwear?

U.S. Footwear – USG Contracting

RECOMMENDATIONS:

• Expand Small Business utilization in solicitations and stop removing Small Business Lots during negotiations for price. This defeats the purpose of protecting Small Businesses.

• Quicker turn-around times from market survey to pre-solicitation to solicitation to contract award. Longer lead times are needed from award to the initial delivery of product. Need government to rely in a more faithful manner on expert footwear manufacturers as it relates to product specifications and the amount of time needed to manufacture product with the highest possible quality. We would recommend the elimination of small business set-asides and HUB Zone pricing advantages.

• Shorten the time from solicitation to award• Shorting the amount of time from bid closings

to award

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 54

280 respondentsQ3b, C1

26

169

85

Not Applicable

No

Yes

0 50 100 150 200

# of Respondents

Has your organization experienced difficulties working with textile and apparel-related

military specifications (MILSPECs)? • Fabric manufacturers have a difficult

time meeting the shade and physical spec on some product lines.

• Inconsistencies and errors noted in Purchase Description (PD's)

• It is sometimes difficult to obtain MILSPEC documents

• It is sometimes difficult to source materials, costs are high due to military procurement of textiles we need for other applications.

• Maintaining Berry compliance in relation to raw materials

• Majority of these specs are out of date!• Many specifications are extremely

outdated and non-applicable to current products

U.S. Textiles and Apparel – Military Specifications (MILSPECs)

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 55

14 respondentsQ3a, F1

3

8

3

Not Applicable

No

Yes

0 2 4 6 8 10

# of Respondents

Has your organization experienced difficulties working with footwear-related military

specifications (MILSPECs)? • Military specifications are very outdated and need to be updated to include any amendments/modifications the DoD has made prior to procurement issuance. A single, updated and finalized document needs to be issued to industry prior to the procurement to allow adequate time for response at time of procurement release. We would recommend the USG provide finalized specifications to be utilized in upcoming procurements at a minimum of 30 days in advance of the procurement.

• Only as it related to construction method. No other issues have been noticed.

U.S. Footwear – Military Specifications (MILSPECs)

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 56

295 respondents

Yes, 202, 68%

No, 37, 13%

Not Sure, 40, 14%

Not Applicable,

16, 5%

Does the Berry Amendment have a positive impact on your organization's business?

Q3c, A.2

U.S. Textile and Apparel - Berry Amendment Impact

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 57

289 respondentsQ3d, A

69

24

8

35

26

11

115

145

127

30

16

11

40

32

14

38

42

26

80

84

33

36

43

51

91

55

96

16

19

14

34

34

45

3

7

13

25

82

187

117

116

139

7

9

7

64

61

34

25

35

26

31

28

20

Decreasing the acquisition threshold (currently $150,000)

Increasing the acquisition threshold (currently $150,000)

Repealing the Berry Amendment in its entirety

Reducing the percentage of the 100% U.S.-originrequirement

Allowing for more Berry Amendment exemptions

Reducing the number of product groups subject to theBerry Amendment

Expanding the number of product groups subject to theBerry Amendment (e.g., Athletic Shoes)

Expanding the number of USG agencies subject to theBerry Amendment

Leaving the provisions of the Berry Amendment unchanged

# of Responses

For the following actions, indicate the impacts on your organization as they relate to the Berry Amendment

Positive Somewhat Positive No Impact Somewhat Negative Negative Too Difficult to Determine

U.S. Textile and Apparel - Berry Amendment

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 58

U.S. Footwear - Berry Amendment Impact

13 respondentsQ3b,A.2

Yes, 11, 85%

No, 2, 15%

Does the Berry Amendment have a positive impact on your organization's business?

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 59

U.S. Footwear - Berry Amendment

13 respondentsQ3c,A

7

9

6

2

2

4

1

1

2

1

2

2

3

1

2

3

1

1

2

2

3

2

1

1

7

1

1

8

9

8

11

2

1

1

1

1

1

1

1

0 2 4 6 8 10 12 14

Leaving the provisions of the Berry Amendment unchanged

Expanding the number of USG agencies subject to the BerryAmendment

Expanding the number of product groups subject to the BerryAmendment (e.g., Athletic Shoes)

Reducing the number of product groups subject to the BerryAmendment

Allowing for more Berry Amendment exemptions

Reducing the percentage of the 100% U.S.-origin requirement

Repealing the Berry Amendment in its entirety

Increasing the acquisition threshold (currently $150,000)

Decreasing the acquisition threshold (currently $150,000)

# of Responses

Positive Somewhat Positive No Impact Somewhat Negative Negative Too Difficult to Determine

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 60

289 respondentsQ3d, B2

Yes, 74, 26%

No, 49, 17%Not Sure, 94,

32%

N/A, 72, 25%

Does the Kissell Amendment have a positive impact on your organization's business?

U.S. Textile and Apparel - Kissell Amendment Impact

• 44 respondents reported having used or worked under the provisions of the Kissell Amendment

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments 61

U.S. Footwear - Kissell Amendment Impact

13 respondentsQ3c,B.2

Yes, 5, 39%

No, 1, 8%

Not Sure, 5, 38%

N/A, 2, 15%

Does the Kissell Amendment have a positive impact on your organization's business?

• 6 respondents reported having used or worked under the provisions of the Kissell Amendment

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Source: U.S. Department of Commerce, Bureau of Industry and SecurityTextile, Apparel, and Footwear Industry Assessments – Preliminary, 2017

BIS/OTE Textile, Apparel, and Footwear Industry Assessments

U.S. Department of CommerceBureau of Industry and Security1401 Constitution Avenue, NW

HCHB 1093Washington, DC 20230

Elizabeth OakesTrade and Industry Analyst

(202) [email protected]

62

Brad BotwinDirector, Industrial Studies

(202) [email protected]

Stamen BorissonTrade and Industry Analyst

(202) [email protected]

BIS/OTE Contact Information

Industrial Base Reports:www.bis.doc.gov/DIB

Source: U.S. Department of Commerce, Bureau of Industry and Security UNCLASSIFIED

Section 232 Investigations: www.bis.doc.gov/232

Erika MaynardSpecial Projects Director

(202) [email protected]


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